I had a borrower this month whose credit score was 577. His credit score was also 640.
Same person. Same credit report. Same afternoon. Two different numbers, 63 points apart, and which one we used decided what kind of loan he could get.
That is not a glitch and it is not a typo. It is how credit scoring has worked for years. What changed is that as of two weeks ago, the number your lender uses is no longer fixed.
Why you have more than one credit score
Most people think of a credit score as a fact about them, like a height. It is closer to an opinion about them, and different companies hold different opinions.
FICO and VantageScore are two different companies that build two different scoring models. They read the same underlying credit data from the bureaus, but they weigh it differently. Same file, different math, different answer.
For decades that did not matter to you, because mortgage lending only used one of them. Loans sold to Fannie Mae and Freddie Mac required a score from a single model, the one the industry calls Classic FICO. There was nothing to choose.
What changed on September 9
The Federal Housing Finance Agency now lets lenders pick.
Fannie and Freddie had been running VantageScore 4.0 through a limited rollout since April, open only to lenders with written approval. On September 9, 2026 they opened it to every approved lender and dropped the approval requirement. In FHFA’s own words, the Enterprises will “allow lenders to determine which credit score model (Classic FICO or VantageScore 4.0) to use on each loan they deliver.”
Read that again, because it is doing a lot of work. On each loan. Not a company-wide switch made once. A choice available file by file.
Classic FICO is not going away. It is still approved, and no retirement date has been announced. A third model, FICO 10T, is approved but is not eligible for delivery yet. So today there are two live options, and for the first time somebody gets to choose between them.
What that looked like on my file
Back to the borrower with two scores.
Conventional financing generally wants to see a 620. At 577 he is not close, and the conversation becomes a very different one, probably a non-agency loan on terms he would not enjoy. At 640 he clears the bar with room, and he is a normal conventional borrower like anybody else.
Nothing about him changed between those two numbers. Not his income, not his debts, not his payment history. The only variable was which company’s model read his file.
That is a big deal, and it is a big deal specifically for the people who need it most: buyers sitting just under a threshold, who have been told no and have no idea a second opinion exists.
Three things this does not do
I would rather you hear the limits from me than find them out later.
It is one model per loan, not per person. FHFA is explicit that lenders “will be required to use the same credit score model for all borrowers on a given loan.” So if you and your spouse are both on the application, we pick one model and it applies to both of you. If VantageScore helps you and hurts your co-borrower, that is a real tradeoff, not a free win. On a two-borrower file this has to be looked at together.
It does not always break your way. The spread can run in either direction. Plenty of people have a higher Classic FICO than VantageScore. The point is not that one model is generous, it is that you now get to know both numbers before deciding. Sometimes the answer is that Classic FICO was already your better number and we use it.
It does not fix damaged credit. If there are collections, recent lates, or a thin file with nothing on it, a different scoring model is not going to rescue that, and anybody telling you otherwise is selling something. A 63 point spread is unusual. A few points is ordinary. If your credit has real problems, the honest path is still the one that actually fixes them, and I will tell you that instead of shopping models and wasting your time.
Where it works today, and where it does not
Scope matters here, so let me be precise instead of vague.
- Conventional: yes. This is the change FHFA made, and it is live now on loans sold to Fannie and Freddie.
- VA: yes. Less widely known, and it is the one that surprises people. On lenders that have implemented it, VA loans can run on VantageScore too. If you are a veteran who has been told your score is too low, this is worth a second look.
- FHA: not yet, and there is a date. FHA has confirmed it is adding VantageScore 4.0 and FICO 10T as eligible models, and announced an implementation date of January 1, 2027. Until then FHA runs on Classic FICO. Anyone telling you otherwise today is ahead of the guidance.
- Jumbo, home equity, and non-agency programs: generally no. These sit outside the agency rules and are still qualifying on FICO.
USDA I would ask about rather than assume.
You do not actually pick the score yourself
Worth clearing up, because the way this gets described makes it sound like a menu.
On the lenders I have seen implement it, the system does the choosing. If more than one model is eligible on your file, it selects the qualifying model automatically. And if something happens that makes the loan ineligible for VantageScore mid-process, it reverts to the FICO score already on file rather than blowing up the loan.
So you are not gaming anything. You are simply on a system that is allowed to look at both numbers instead of one. The work on my end is knowing which lenders have that system running.
Here is the part that actually decides whether you benefit
Everything above is policy. Policy is not the same as capability.
FHFA has said every approved lender may use VantageScore 4.0. It did not say every lender has. This went live market-wide fifteen days ago. Turning it on means systems work, pricing work, and underwriting work, and lenders are moving at very different speeds. Some already have it running. Many do not have it yet. That gap is going to persist for months.
So the useful question is not “can my lender use VantageScore.” It is “has this particular lender actually turned it on, and are they one of the lenders that fits the rest of my file.”
A bank has exactly one answer to that question, and it is whatever their answer happens to be. If they have not implemented it, you do not get the option, and nobody is going to call you when they do.
I work with 40+ lenders. Some of mine have this live today, which is how the borrower above ended up with a loan instead of a lecture. That is not cleverness on my part. It is just what having more than one door gets you, and it is the same reason shopping a file across lenders beats taking the first answer you are handed. It is the whole practical case for a broker over a bank, and this is the cleanest example of it I have seen all year.
What to do with this
If you have been declined in the last year, it is worth another look. Especially if you were turned down on score and the number was close, and especially if you are a veteran, because VA is live on this now. The rule that produced that no is not the rule anymore.
If you are about to apply, ask the question out loud. “Which scoring model are you running, and do you have VantageScore 4.0 available?” A lender who cannot answer that in September of 2026 is telling you something.
Do not go pull your own scores from an app and plan around them. The free score on your phone is usually neither of the models above, and I have watched people talk themselves out of buying a house over a number that was never the number. I wrote about what score you actually need, and the short version is that the only scores that count are the ones a lender pulls.
Then get properly pre-approved so you are working from real numbers, and remember that the figure on the letter and the loan you close are two different things.
None of this costs you anything with me, because I do not charge a lender fee. Ever. Agents, if you have a buyer who got a no on credit this year, this is worth a phone call before you write them off. Here is how I work with agents.
Don’t be mad at money. Shop your rate.
Been told no on your credit score? Send me your situation and I will pull both numbers and tell you straight whether the second one helps you or not. If it does not, I will say so. Ten minutes, free, zero lender fees. Call or text (512) 423-4663.
Russell Stout | Texas Mortgage Consultants, PLLC | NMLS #220896 | Company NMLS #1843758 | Equal Housing Lender. Credit score model availability varies by lender and loan program and is subject to change; not every lender has implemented VantageScore 4.0. FHA has announced a VantageScore 4.0 implementation date of January 1, 2027 and does not accept it before that date. Program eligibility described here reflects conditions as of September 2026 and should be confirmed for your specific loan. Program eligibility, rates and terms vary by lender, loan program, and borrower qualification and are subject to change; this is not a loan offer, quote, or commitment to lend. Not credit repair, tax, or legal advice. All loans subject to credit approval.
Frequently Asked Questions
Can a mortgage lender use VantageScore instead of FICO?
Yes, on conventional loans and, at lenders that have implemented it, on VA loans. On September 9, 2026 Fannie Mae and Freddie Mac expanded VantageScore 4.0 to all approved lenders and removed the requirement for prior written approval. The Federal Housing Finance Agency allows lenders to determine which credit score model, Classic FICO or VantageScore 4.0, to use on each loan they deliver. Classic FICO also remains approved. Availability in practice depends on whether the individual lender has implemented VantageScore 4.0, and many have not yet.
Can VantageScore be used on a VA loan?
Yes, at lenders that have implemented it. VA is one of the programs where VantageScore 4.0 is accepted alongside Classic FICO, which matters for veterans who have been declined on a credit score that fell just under a program minimum. Availability varies by lender, so it should be confirmed for the specific lender handling the loan.
Can VantageScore be used on an FHA loan?
Not yet. FHA has confirmed it is adding VantageScore 4.0 and FICO Score 10T as eligible credit score models for FHA-insured mortgage underwriting, and announced an implementation date of January 1, 2027. Until that date, FHA-insured loans qualify on Classic FICO. FHA has also issued a preparedness guide for lenders ahead of the transition.
Why is my FICO score different from my VantageScore?
FICO and VantageScore are separate companies with separate scoring models. Both read credit data from the national credit bureaus, but they weigh that data differently, so the same credit file can produce two different numbers. Differences of a few points are common. Large gaps happen and usually reflect how each model treats a specific feature of the file, such as limited credit history or a particular type of account.
Can a higher VantageScore get me approved when my FICO is too low?
It can, on a conventional or VA loan, when the lender has VantageScore 4.0 available and the higher score clears the program’s minimum. Conventional financing generally looks for a score of at least 620, so a borrower whose two scores fall on opposite sides of that line can qualify under one model and not the other. The spread can also run the other way, with Classic FICO producing the higher number. On lenders that have implemented both models, the system generally selects the qualifying model automatically rather than leaving it to the borrower.
Can different borrowers on the same loan use different credit score models?
No. The Federal Housing Finance Agency requires lenders to use the same credit score model for all borrowers on a given loan. One model is selected for the file and applies to everyone on the application, so on a two-borrower loan the choice has to account for both borrowers rather than only the one it helps.
Is Classic FICO being eliminated for mortgages?
Not currently. Classic FICO, meaning FICO Scores 2, 4 and 5, remains an approved credit score model for loans sold to Fannie Mae and Freddie Mac. It is expected to be retired at some future point, but no retirement date has been announced, and FHFA has said advance notice will be given before any change takes effect. A third model, FICO Score 10T, is approved but is not currently eligible for loan delivery.
Does the credit score on my free credit app matter for a mortgage?
Generally no. Free consumer credit apps usually display a score from a model that is not used in mortgage lending, so the number shown there often differs from what a lender sees. The scores that determine a mortgage approval are the ones pulled by the lender through the credit reporting process. Planning around an app score, in either direction, tends to produce surprises.
